Deep Dive into Hedge Funds (Capital Allocators, EP.34)
Capital Allocators – Inside the Institutional Investment Industry
00:00
How to Incorporate Mutual Thinking Into a Hedge Fund Business
A fee structure that would go down over time based on the duration of an investor's time with the manager. The switching costs, it's certainly in the hedge fund industry and probably all of that management are just way too low. Once someone's been managing a certain amount of money and they build a cost structure that supports it, it's really hard to dramatically reduce the revenue base almost no matter how high the fees are.
Play episode from 42:19
Transcript
